cloud-init user-data flag

has anyone used the nova-boot command with the --user-data flag?
When i try to boot an image with the user-data it boots up properly, but all of the input from the user-data does not transmit to the actual instance. when i boot the VM i do see the a user-data hash as in the image below:

When i select config drive the instance does get the user-data info and modifies the VM.
i installed the neutron-dhcp-agent, neutron-metadata-agent, however, the only thing that i see in the instance cloud-init.. logs is that it is not able to find a datasource.
i added the following to the nova.conf

Hi Bernd,
thank you for answering :)
I updated the post above.
the error i get is Failed to connect to 169.254.169.254 port 80: No route to host.
the full log is in the pastebin https://pastebin.com/jyq0gRE1